Published On: Wed, Sep 6th, 2017

Big Investments Require Big Bucks, But Are They Always Worth It?

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When it comes to money and finances, we always seem to be on a never-ending cycle that requires us to pay out. It doesn’t overly matter what for, but we have to fork out dollar after dollar at every stage in life. Whether you’re just buying groceries for that week, or deciding on the right retirement fund, you will find that you will always have money on the mind – even if you’re not conscious of it. Aside from those small everyday expenses, and the ones that require a little more thought, we also have those bigger life expenses that come with a heftier price tag.

 

Because in life, there are a few things that require big investments and most of them are common parts of everyone’s life, so we come to see that as normal. But, we’re often talking about thousands of dollars, if not hundreds of thousands of dollars, worth of investments here – so they’re not decisions we should ever take lightly. And just because they’ve become ‘the norm’, and they’re part of the life process for most people, it doesn’t mean we have to see them as normal for us all. So let’s take a look at some of life’s biggest investments and weigh up the pros and cons to see if they really warrant the big bucks once and for all.

 

Education

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Education is often one of the most expensive life milestones that you can be faced with, whether you’re paying for yourself or for your children. But it often warrants the question as to whether an expensive education is worth it? Whether you go private or public or stay on at college through all of the graduate levels, the fees can add up. So you have to be able to weigh up the positives with the negatives.

 

One one hand, education is a requirement and can set you or your children up for the future. Investing in college can often be a great investment for your career, particularly if you want to go into medicine or law. Both fields often allow you to pay back your loans in no time at all, thanks to healthy salaries. But years of education can cost six-figures and may take longer to pay off if you don’t land that job of your dreams. So the choice often has to be made based on your circumstances.

 

Property

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Another key expense is property. Although some people may choose to rent for the majority of their life, the option to buy your own home is always alluring. When you buy, you really do feel like you have a home of your own. You can customize it to your tastes, extend if you wish, and sell when you’re ready and get some of your money back out, which you can’t do when you rent.

 

But there are downsides to buying too. Buying your own home can be expensive up front. You often need a large down payment, and the fees may also put you off. You may need to use a mortgage calculator before you make a decision, just to make sure you can afford it. You may also lose money in property, as you’re not guaranteed to get a good return when you do decide to sell.

 

Cars

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Cars have become a key part of everyday life. We all use them, and they’re often a necessity to be able to get to work or to school, whether you’re studying yourself or dropping off kids. If you live far from everything, it’s often essential. So, you want to invest in something new and reliable, so that you’re not left stranded, but that can often be thousands more than something older. And it’s that additional expense that can be off putting.

 

Even when you work on ways to save thousands on your car, you may find that you have repairs to work on over the years that cost you the earth. Cars are also expensive to run, with insurances and gas prices always going up. And to top it off, the cost depreciates. So you will have to weigh up both sides.

 

Healthcare

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Healthcare is also another essential expense that we can’t always cut out. It’s something you need, and you want to be covered, so you’re often more than willing to pay for the healthcare coverage that’s required. Plus, if you ever do need to use your healthcare, you’ll be pleased that you put the investment up in the first place.

 

But at the same time, you may not need it. You may find that you’re paying money for something that you do not need, especially if you have high cover levels. On the flip side, you may not have the right coverage, and not be able to claim when you need it the most, which will cost you more money in the long run. So you should really ensure that you’re able to shop around for the right policy, and check that the coverage you have is what you may need if you have to claim.

 

Weddings

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The fifth and final large life expense that we should also consider is the cost of weddings. You may not see yourself spending a lot of your own special day, but it’s hard not to ignore the average cost as it keeps creeping up and up. So, you need to ask yourself, is the cost of your wedding really worth it? Especially when the average is often upwards of $30,000!

 

The positives are often quite obvious. You want to get married, you want to have your dream wedding, and enjoy the day. And unless you’re willing to cut costs and sacrifice on what you want, you will need to pay what the going costs are. However, on the other hand, you have to realize that it is expensive just for one day. Although everything from the venue to the flowers will add up, the cost can be astronomical when you think that it’s for one day of your life. So you’ll have to decide, is the expense worth it?

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